Graph the payoff diagrams of the following positions assuming the holding period and option expirations are in 3 months.

a) Short a share of stock in ABC

b) Buy a call in ABC with a strike price of $50

c) Invest the PV of $50 at the risk-free rate (8% annually)

d) a, b, and c together as a portfolio

e) Given the following prices, is there an arbitrage opportunity, and if so, how would you exploit it?

S = $55

C = $6.73

P = $2.10

Risk-free rate = 8% annually